With Net Profit of $1.84 Billion Google Posts Profitable Q2

Recently Google has announced its financial performance of Q2 ended 30 June 2010. As per the announcement Google has posted a total revenue of $ 6.86 Billion with net profit of $1.84 Billion in Q2 ended 30 June 2010, as compare to $1.48 Billion in the same quarter in 2009. With 23.5% Revenue increase, Google has achieved $6.86 as compared to $5.52 in second quarter in 2009. Google results came as a strong sign of market improvement.

“Google had a strong second quarter,” Eric Schmidt, chief executive officer, Google, has said. “We saw strength in every major product area, as more and more traditional brand advertisers embraced search advertising and as large advertisers increasingly ran integrated campaigns across search, display, and mobile.”

In the second quarter of 2010, Google-owned sites generated revenues of $4.50 billion, or 66 per cent of total revenues, while its partner websites generated revenues, through AdSense programmes, of $2.06 billion, or 30 per cent of total revenues. Traffic acquisition costs (TAC), the portion of revenues shared with the partner websites, totalled $1.73 billion, or 26 per cent of advertising revenues.

Despite of various criticism by many industry mentors and setup of key people loss ( Read – Is Google Turning Out as Next Microsoft) , Google’s financial results of Q2 shows company’s strong current position in the market. With many recent acquisitions, major mobile initiatives and future road map, Google’s future seems to be very promising and stable, at least for next 2 quarters.

Revenues from outside of the United States totalled $3.53 billion, representing 52 per cent of total revenues in the second quarter of 2010. Revenues from the United Kingdom totalled $770 million, representing 11 per cent of revenues. As of June 30, 2010, Google had a cash, cash equivalents, and short-term marketable securities of $30.1 billion and employed 21,805 full-time employees globally.